With the dollar on appreciating in front of its counterparts, the price of Gold started to plunge. Bearish signals started to appear on XAUUSD’s chart from yesterday. Support: 1234.04, 1212.72, 1178.81; Resistance: 1255.00, Trend Line; On 14th of July the price has broken the latest op move trend line which is the first bearish signal. During the past hours, bulls try to send the price higher, but it seems that they didn’t have enough strength and now bears are pushing down. If the … [Read more...]
In this section you will find information, news and analysis about some of the most important commodities: precious metals (gold, silver) , cotton, oil or grains like wheat, corn and sugar.
As a general pattern they are described as goods meant to satisfy needs or wants. The price for commodities is very much influenced by fundamental factors, risk aversion and for a certain category (eg. grains) weather.
In a period of time where there are no major fundamental factors to push up or down the quote, technical analysis work very well for grains.
Chart: XAUUSD, Daily The price of gold started to fall at the end of august. In less than 2 months it touched a low at 1251$ per ounce, marking a loss of 12.6% from the high of this second half of 2013. The down trend seems to have lost its power with every swing low and yesterday the price has drawn a reversal candle, Hammer. Looking at the form of the down trend on both, candle stick chart and line chart, we can observe that the price has drawn a Falling Wedge. This pattern usually … [Read more...]
Last year, there were a lot of speculations that because of the dry weather from the United States the wheat and corn production would be very low so the prices rallied to record highs. In the autumn of 2012 even though the yields were pretty low, the production was not that bad and prices started to fall. This year the production is estimated to be high. Each time prices go up; producers are planting more and more so the offer rises fast, while the demand remains constant. In these cases the … [Read more...]
Apparently, the case of the Republic of the United States of America becoming the largest oil producer in the world, overcoming Russia, is getting more attention because is adding more and more evidences. On the strength of the shale revolution, the U.S. is now playing an important role among the OPEC countries. In the second half of 2014, the U.S. is estimating to become the largest non-OPEC oil producer, overcoming Russia, which now is constrained to make large investments in new pipelines. … [Read more...]
Syria is the main subject at the current moment. United States are holding the Syrian government accountable for killing their own citizens with chemical weapons last week. Not only the United States, but also UK and France are blaming Assad for the killings in Ghouta and all of them are willing to intervene. It didn’t take long for protestants to appear. The protests in Libya had a negative impact on the oil production. A shortage in the oil offer brought higher prices for both WTI and Brent … [Read more...]
1) The factor that influences the most the long-term performance of gold is no longer the U.S.’ sentiment and behavior. Currently, the emerging markets are strongly influencing the precious metal as they covers almost 70% of the annual demand, while U.S. accounts for almost 10%. Covering the period April-June 2013, the demand for gold increased with 54% in China and 51% in India. 2) Central Banks remain committed to buying gold. Even if the demand in the second quarter (71 tones) didn’t … [Read more...]
Chart: XAUUSD, Daily After hitting a low under 1180$ per ounce the price of Gold bounced back to 1290$ per ounce. The most interesting thing about this throwback is that the commercials are still net short on this instrument, but the open interest is on the up move. This might mean that the precious metal is being bought by private investors more, and less by Central Banks and Hedge Funds. Tomorrow Ben Bernanke is expected to have another speech. Investors will look for signals regarding … [Read more...]
Chart: GOLD, H4 As it looks now, in our opinion, the answer would be not yet. The FOMC meeting minutes showed that there are more members that agree with the tapering of the Quantitative Easing program, but it wasn’t specified the date for the start of the tapering. The speculated date was September this year, but it seems that the Federal Reserve has to see whether the unemployment rate is heading to 7%. After the Minutes the dollar lost some ground, gold rallied to 1265$ per ounce but … [Read more...]
Did you missed an analysis on commodities? Well, we thought of updating an older analysis on WTI Crude Oil, because a lot of interesting things have happened since then. In our last analysis, WTI Crude Oil Looking Bullish More than Ever, we have made a technical analysis on the evolution of the WTI Crude Oil and we were expecting a breakout through 97.45$ per barrel. Our setup was helped by a series of fundamental events. In Egypt a riot started against the President Mohamed Mursi which … [Read more...]
Have you looked at the chart of XAUUSD (Gold) lately? It looks pretty impressive. After the price broke down from the rectangle pattern, it fell back to 1338.10 dollar an ounce but it did not went through the 1321.00 low. Chart: XAUUSD, H4 For the past week the buyers tried to bring the price of gold back to 1400$/ounce and they managed several times, but couldn’t close over this barrier. During Bernanke’s testimony it rallied almost to 1415.00 but it was pulled back really fast and it … [Read more...]
During the last one and a half months the Crude Brent Oil has consolidate in a Symmetrical Triangle. The pattern has came to touch the trend line and was rapidly rejected. Chart: Brent Oil, Daily The last 2 days drop brought the price back to the lower line of the triangle and today it has broke the line. For the moment it has found support at 101$ per barrel. If it will break this level and most important it will close under it and under the triangle line, we can expect for this drop … [Read more...]